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The Sky Is The Limit For Cryptocurrencies (Or No?)

In some other blog I wrote about cryptocurrencies, I said that volatility is cryptocurrency’s best cousin. Well…speculation is cryptocurrency’s favorite brother I’ll add.

It’s not just wacko people that speculate insanely about the future of cryptocurrencies (and specific cryptos) but high profile individuals such as John McAfee on the one hand and James Dimon on the other hand. Although some people may argue that Mr. Dimon is a mad person, almost everyone in cyber security and cryptocurrency respect John’s opinions.

So what about John? Well…he had suggested initially that he sees Bitcoin reaching $500,000/bitcoin by 2020 and made a bet on that or he’ll do something I can’t say on this blog (there are kids reading these articles too.) To add onto the “madness” he later suggested (right after Bitcoin smashed through $10,000 and briefly hit $20k) that the same bet is on with the same consequence for him, if bitcoin does not reach $1,000,000 by 2020.

I am not saying Bitcoin will or will not hit 6 figures or even 7 figures. But what I am saying is, there is a lot of hype right now in the cryptocurrencies world. Too much! And maybe that is a good thing. Because if there were moderate gains, do you think cryptocurrencies would make the news? Do you think we would have Bitcoin futures right now and Wall Street firms adopting the crypto evolution? From that standpoint, it’s a phenomenal PR hit.

But the risks are still there…for every single one that is buying into cryptocurrencies, just because prices are going up up up. I personally prefer to look at the value of a company, versus the breakout point and analytic trading like that. Moreover, I like viewing innovative startups that I can be a part of. I’m talking about ICOs. Those tend to be safer bets at least in the short term, since a good ICO will spike up after it is traded on the exchanges – so there are changes to dump the token if you want to do so. Also, it’s cheaper (most of the times) compared to trading an already established cryptocurrency.

But beware of the scam ICOs that will take their millions and run. There are a bunch of them, and keep in mind that all junk coins you see trading right now, had an ICO. Some started at $5 and dropped to under $1 while other started at just a few pennies, and are worth now way over $20-$30.